Preliminary Results 201834db9396-89ae-4c79-84d6-c5d356ac7fd2/20190220-Gl...Preliminary Results 2018 Important notice concerning this document including forward looking statements This

Preliminary Results 201820 February 2019

Preliminary Results 2018

Important notice concerning this document including forward looking statementsThis document contains statements that are, or may be deemed to be, “forward looking statements” which are prospective in nature. These forward looking statements may be identified by the use of forward looking terminology, or the negative thereof such as “outlook”, "plans", "expects" or "does not expect", "is expected", "continues", "assumes", "is subject to", "budget", "scheduled", "estimates", "aims", "forecasts", "risks", "intends", "positioned", "predicts", "anticipates" or "does not anticipate", or "believes", or variations of such words or comparable terminology and phrases or statements that certain actions, events or results "may", "could", "should", “shall”, "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements are not based on historical facts, but rather on current predictions, expectations, beliefs, opinions, plans, objectives, goals, intentions and projections about future events, results of operations, prospects, financial condition and discussions of strategy. By their nature, forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond Glencore’s control. Forward-looking statements are not guarantees of future performance and may and often do differ materially from actual results. Important factors that could cause these uncertainties include, but are not limited to, those disclosed in Glencore’s 2017 Annual Report, which will be updated in the 2018 Annual Report that will be published in early March 2019.For example, our future revenues from our assets, projects or mines will be based, in part, on the market price of the commodity products produced, which may vary significantly from current levels. These may materially affect the timing and feasibility of particular developments. Other factors include (without limitation) the ability to produce and transport products profitably, demand for our products, changes to the assumptions regarding the recoverable value of our tangible and intangible assets, the effect of foreign currency exchange rates on market prices and operating costs, and actions by governmental authorities, such as changes in taxation or regulation, and political uncertainty.Neither Glencore nor any of its associates or directors, officers or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this document will actually occur. You are cautioned not to place undue reliance on these forward-looking statements which only speak as of the date of this document. Except as required by applicable regulations or by law, Glencore is not under any obligation and Glencore and its affiliates expressly disclaim any intention, obligation or undertaking, to update or revise any forward looking statements, whether as a result of new information, future events or otherwise. This document shall not, under any circumstances, create any implication that there has been no change in the business or affairs of Glencore since the date of this document or that the information contained herein is correct as at any time subsequent to its date.No statement in this document is intended as a profit forecast or a profit estimate and past performance cannot be relied on as a guide to future performance. This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any securities. The companies in which Glencore plc directly and indirectly has an interest are separate and distinct legal entities. In this document, “Glencore”, “Glencore group” and “Group” are used for convenience only where references are made to Glencore plc and its subsidiaries in general. These collective expressions are used for ease of reference only and do not imply any other relationship between the companies. Likewise, the words “we”, “us” and “our” are also used to refer collectively to members of the Group or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies.

HighlightsIvan Glasenberg – Chief Executive Officer



SummaryRecord Adjusted EBITDA and returns to shareholders, more to come

3

Distributions and announced buybacks

$5.2bn$2.84bn distribution, $0.32bn trust

purchases$2bn announced buybacks

Adjusted EBITDA(1)

Net income pre-significant items

$15.8bn

$5.8bn

+8% YoY

+5% YoY

Notes: (1) Refer basis of presentation on page 7 of the Preliminary Results 2018, refer to note 2 page 52 and Alternative Performance Measures page 106 for definition and reconciliation of Adjusted EBITDA/EBIT. (2) See slide 33

75%Implied payout ratio

$5.2bn of 2018 equity cash flow of $6.9bn(2)

New buybacks announced today

$2+1bn$2bn minimum to Dec 2019;

+$1bn upon delivery of targeted non-core disposals

Illustrative 2019 shareholder returns$2.75bn distribution (20¢)

$2-3bn new buybacks

$4.8-5.8bn

High quality, high margin assets generated record results …

… compelling returns for shareholders …

… and the cash return story should continue


4Sustainability performanceOur approach reflects our commitment to operate transparently and responsibly

1.4 1.02 1.06

2016 2017 2018

4.05 3.08 3.18

2016 2017 2018

23.1 21.6 18.5

2016 2017 2018

11.9 11.6 11.8

2016 2017 2018

84 90 95

2016 2017 2018

16 9 13

2016 2017 2018

Fatalities

Lost time injury frequency ratePer million hours worked(1)

Total recordable injury frequency ratePer million hours worked(1)

CO2Scope 1Million tonnes(2)

CO2Scope 2Million tonnes(2)

Community investment spendUS$ million

Notes: (1) Lost time incidents (LTIs) are recorded when an employee or contractor is unable to work following an incident. LTIs are recorded when an incident results in lost days from the first rostered day absent after the day of injury. The day of the injury is not included. LTIFR is the total number of LTIs recorded per million working hours. LTIs do not include Restricted Work Injuries (RWI) and fatalities. TRIFR = Total sum of Fatalities, Lost Time Injuries, Restricted Work Injuries and Medical Treatment Injuries per million hours worked. (2) Data subject to final verification and may change.


5Governance and Ethics

Following the publication of the new UK Corporate Governance Code, the Board has established a new Ethics, Compliance and Culture committee (ECC).

The Code introduces new provisions requiring the Board to establish the Company’s purpose, values and strategy and ensure that these and its culture are aligned.

The ECC will therefore:

• be responsible for Group's ethics and compliance in place of the audit committee

• oversee the Group's culture• monitor engagement with the Group's employees. For this

purpose three Non-Executive Directors will have specific geographic responsibilities

• be responsible for broader stakeholder engagement including suppliers and customers

As a result, three committees are now in place to provide leadership and oversight for the Board across the Group's main risks - financial, sustainability and ethical - and to support its wider strategic considerations.


6Climate changeFurthering our commitment to the transition to a low carbon economy

Following engagement with the investor signatories of the Climate Action 100+, we are furthering our commitment to the transition to a low carbon economy(1)

• As one of the world’s largest diversified mining companies, we have a key role in enabling transition to a low carbon economy

• We do this through our well positioned portfolio that includes copper, cobalt, nickel, vanadium and zinc –commodities that underpin this transition

• We aim to prioritise capital investment to grow production of commodities essential to the energy and mobility transition

• We aim to limit our coal production capacity broadly to current levels

• Our commitment includes:• Paris-consistent capital discipline• Developing new longer-term Scope 1 and 2 reduction targets• Regular review of progress• Alignment with TCFD recommendations• Corporate climate change lobbying review

2018 2019F 2020F 2021F

Copper Cobalt Zinc Nickel Coal

Glencore production growth 2019-2021 (2018=100)

Cobalt

Zinc

Copper

CoalNickel

Total capex by segment ($bn)

3.9 3.6 3.6 3.2

1.0 1.4 1.31.2

2018 2019F 2020F 2021FMetals and Minerals Energy

Notes: (1) See RNS 20 February 2019, “Furthering Our Commitment to the Transition to a Low Carbon Economy”

Notes: (1) Excludes recent Volcan investment, currently under assessment. (2) The number of tailings storage facilities is calculated based on a definition that we keep under review.Preliminary Results 2018

Tailings Storage Facility (TSF) Management 7

Detailed assessment/audit of all material TSFs over the past three years(1,2)

• Significant asset footprint accumulated over the past 45 years through M&A (MIM/Falconbridge/Noranda/Xstrata) and organic growth

Our approach

• Dam Safety Assurance Program commenced in 2016 with a foundational assessment against more than 100 criteria related to best practice for dam safety and governance. We work in partnership with one of the world’s leading experts - Klohn Crippen Berger (KCB)

• Standards: All material TSFs are assessed against national regulations and guidelines and against criteria aligned with international guidelines from the Canadian Dam Association (CDA), the Australian National Commission of Large Dams (ANCOLD) and the International Commission of Large Dams (ICOLD).

• Dam Safety Audits: Regular surveillance and dam safety inspections on a quarterly to annual basis for operating sites, annual dam safety inspections for closed sites. Full corporate audit (detailed technical / governance) every 12-18 months by KCB

• Governance: Clearly identified roles/responsibilities, change management processes, action tracking and documentation

• Verification: All corrective actions are subject to verification

We support a TSF classification system and requirements for external review, with transparent disclosure to stakeholders and communities

TSF inventory, including Non-operated JVs(1,2)

140TSFs

51%Upstream

49%Centreline

& Downstream

31%Active

69%Closed

High potential consequence facilities are under active management programs designed to increase factor of safety according to international standards

65 active75 closed

2018 Financial performanceSteven Kalmin – Chief Financial Officer



2018 Financial scorecardRecord Adjusted EBITDA and returns to shareholders

9

Marketing Adj. EBIT ($)

Net debt ($)

Funds from operations ($)

Distributions and announced buybacks

2.4bn 11.6bn

14.7bn $5.2bn

-17%, result impacted by alumina and cobalt

challenges in H2

+2% vs 2017

+$4.5bn, after $3.9bn M&A and $4.9bn distributions and completed

buybacks in 2018Within $10-$16bn target range

Net funding up modestly from 2017

$2.84bn base distribution of 2017 cash flows, $0.32bn

trust purchases and $2bn of announced buybacks

Adjusted EBITDA ($)(1)

Capexnet cash outlay ($)

Industrial Adj. EBITDA ($)

Net income ($)

15.8bn 13.3bn

4.9bn 3.4bn

+8%, record result +15%, buoyed by higher average pricing and

increased production

+29%, higher capex from HVO and Hail Creek

acquisitions, some cost inflation and project

progression, including Katanga, Zhairem and INO

-41%; Net income pre-significant items +5% to

$5.8bn

Notes: (1) Refer basis of presentation on page 7 of the Preliminary Results 2018, refer to note 2 page 52 and Alternative Performance Measures page 106 for definition and reconciliation of Adjusted EBITDA/EBIT.


Industrial2018 Adjusted EBITDA: $13.3bn

Industrial Adjusted EBITDA

7.2 7.1 4.0 6.0 8.3 8.5

3.4 2.8

2.3

1.5

3.6 5.3

-0.2 -0.4 -0.4 -0.3 -0.3 -0.5

2013 2014 2015 2016 2017 2018

Corp and Other Glencore AgricultureEnergy Products Metals and Minerals

$10.5bn$9.8bn

$6.0bn

$7.3bn

$11.5bn

$13.3bn

10

EBITDA mining margin

34%

30%

21%

33%

40%

38%

28%

26%

29%

32%

41%

46%

2013 2014 2015 2016 2017 2018

Metals and Minerals Coal

Record Industrial performance• Adjusted EBITDA up 15% to $13.3bn • Stronger year-on-year commodity prices, higher copper,

cobalt and coal production, partially offset by cost inflation, (net of FX benefits) and reduced third party smelting profitability

Metals and Minerals• EBITDA mining margin of 38% (40% in 2017)• Adjusted EBITDA up 2%, in line with higher average prices

and increased Katanga production, offset by inflationary cost increases (net of FX), lower custom smelting profitability and the base effect of our African zinc assets sold in 2017

Energy Products• Coal EBITDA mining margin of 46% (41% in 2017)• Adjusted EBITDA up 48%, largely reflecting higher prices

and the incremental contribution of the HVO and Hail Creek acquisitions in 2018


IndustrialAdjusted EBITDA bridge

Variance 2018 vs 2017 ($M)

11,538

13,2752,039

432

353 380

1,347 120

2017 Price Volume Cost FX Coal hedge Other 2018

11

Volume: Katanga and Lady Loretta restarts, acquisitions of HVO and Hail Creek, offset by the sale of Africa Zinc in 2017

Price: Copper +6%Nickel +26%Cobalt +32%Realised coal +11 to 22%Oil +31%

Cost: Inflation (including new DRC Mining Code) across the African copper assets, elevated CPI in Argentina, Lady Loretta restart costs, higher energy and commodity input costs, declining grades at Raglan and Sudbury, lower custom smelting profitability, and higher revenue linked royalties at some assets

FX: Mainly:AUD +c.$135MARS +c.$100M


Industrial2018 key commodity performance

Copper Zinc Nickel Coal

$4.7bnEBITDA

87 87

104

2016A 2017A 2018A

1610

24

-5-16

-4

2016A 2017A 2018A

265

191211

2016A 2017A 2018A

3946 47

1832

40

2016A 2017A 2018A

Margin ($/t)

Ex gold

• 1.454Mt (+144kt YoY)• 30% Group EBITDA• 166¢/lb calculated

EBITDA margin

• Production +144kt: mainly Katanga restart less Alumbrera depletion

• c.$80M EBITDA deferred from 22kt lower copper sales vs production and $134m EBITDA opportunity cost from Katanga cobalt sales suspension (3.9kt)

• Unit costs: +17¢/lb: higher gross costs including energy and DRC mining code impact plus items noted above - sales vs production impact and Katanga cobalt sales suspension

• 1.068Mt (-22kt YoY)• 15% Group EBITDA• 133¢/lb calculated

EBITDA margin

• 124kt (+15kt YoY)• 5% Group EBITDA• 379¢/lb calculated

EBITDA margin

• 129Mt (+9Mt YoY)• 33% Group EBITDA• $40/t calculated

EBITDA margin

12

$2.3bnEBITDA

$0.8bnEBITDA

$5.2bnEBITDA

• Production slightly lower: Lady Loretta ramp-up less African disposals in 2017

• Unit costs: +12¢/lb: lower by-product prices, some general cost inflation and margin compression in Canada as some of the operations approach end of life.

• Production +15kt: mainly Koniamborunning two lines

• Unit costs: +20¢/lb: declining PGM and copper by-products (INO)

• Production +9Mt: Recovery in Australia, additions of HVO and Hail Creek, less Prodeco

• Unit costs: +$1/t: higher revenue-linked royalties, higher fuel prices, partly offset by weaker AUD

Mine costs (¢/lb) Mine costs (¢/lb) Mine costs (¢/lb) Mine costs and margin($/t)

Notes: (1) See Investor Update presentation of 3 December 2018 for further information on alumina and cobalt impactsPreliminary Results 2018

Marketing 2018 Adjusted EBIT: $2.4bn

Marketing Adjusted EBIT ($bn)Market conditions, for the most part, were reasonable, however, were hampered in H2 by a “basis risk” pricing correlation breakdown related to sourcing alumina to meet the LME linked sales commitments as well as cyclically challenging cobalt markets. Adjusted Marketing EBIT -17% y/y

Metals and Minerals Adjusted EBIT -13%• Generally healthy underlying demand and supportive physical

commodity market conditions were outweighed by alumina and cobalt market impacts(1)

Energy Products: Adjusted EBIT -25%• Reflecting the strong 2017 base, oil forward curves being in

backwardation, thereby reducing trading opportunities, and a more cautious approach to coal marketing opportunities from an expected risk/return perspective (11% lower thermal volumes).

Agricultural Products: Adjusted EBIT -79%• Glencore Agri stand-alone EBITDA 23% lower due to poor crop

size in Australia, continued industry margin pressures and US/China trade tensions

• Agricultural products now reported as an associate, i.e. share of Net income (previously proportionately consolidated). 2017 results have been restated to reflect this change

1.6 1.5 1.3 1.6 2.0 1.7

0.60.5

0.8

0.9

1.0

0.7

0.2

0.9 0.5

0.4

0.1

-0.1 -0.1 0.0 -0.1 -0.2 -0.1

2013 2014 2015 2016 2017 2018

Corp and Other Glencore Agriculture Energy Products Metals and Minerals

$2.4bn

$2.8bn

$2.5bn

$2.8bn$2.9bn

$2.4bn

13

Agriassociate accounting treatment

Agriproportionately consolidated from Dec

Agrifully consolidated

Non

-Agr

icom

paris

on


Marketing2019 guidance

Long-term Marketing Adjusted EBIT guidance ($M)Long-term Marketing Adjusted EBIT range of $2.2 to $3.2bn• We are confident of an improved year-on-year

performance towards the middle of our long-term guidance range(1)

Performance towards the top end of the long-term range requires the alignment of conditions for many/all commodities that reflect:• Production/volume growth• Tight/tightening physical market conditions• Selective deployment of additional working capital• Higher interest rates

(1) Additional business/volume opportunities from recent M&A (Hail Creek, HVO, Chevron SA, Alesat) expected to offset the accounting impact on EBIT from discontinuation of proportionate consolidation (50%) of Agricultural Products in favourof associate reporting which recognises Glencore’s lower share of Glencore Agriculture Limited’s net income

Long-term guidance range: $2.2-$3.2bn

14

3.2

1.6

2.3

1.92.1

2.4

2.8

2.5

2.82.9

2.4

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

200

8

200

9

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

+

2018: $4.9bn• $3.6 sustaining capex, $1.3bn expansionary capex• Expansionary capex primarily at Katanga, Mopani,

Koniambo, INO and Zhairem

2019-2021 Sustaining capex average: c.$3.6bn

2019-2021 Expansionary capex average: c.$1.2bnInvestment in brownfield developments:• Copper: Mopani shafts and new concentrator, Katanga

acid plant / cobalt process improvements, Collahuasi mill expansion to 170ktpd

• Zinc: Zhairem brownfield mine project• Nickel: Raglan Phase II, Onaping Depth, Sudbury

Process Gas • Coal: Mt Owen life extension, Integra (coking coal)

extension• Oil: Alen Gas (Equatorial Guinea)


Capex$4.9bn net cash outlay in 2018, c.$4.8bn equivalent annual average 2019-2021

15

4.7 7.7 10.5 12.9 11.3 8.6 5.7 3.3 3.8 4.9 5.0 4.9 4.4

200

9pf

2010

pf

2011

pf

2012

pf

2013

pf

2014

2015

2016

2017

2018

2019

F

2020

F

2021

F

3.6 3.6 3.8 3.4

1.3 1.4 1.11.0

2018 2019F 2020F 2021F

Sustaining Expansionary

Industrial Capex ($bn) By segment ($bn)

3.9 3.6 3.6 3.2

1.0 1.4 1.31.2

2018 2019F 2020F 2021F

Metals and Minerals Energy

Industrial capex history ($bn)


Balance sheetConservative financial policies guide strength and flexibility

16

Net funding ($)

FFO to Net debt

Net debt ($)(1)

Net debt to Adj. EBITDA

32.1bn 14.7bn

78.8% 0.93x

+3% vs 2017 +$4.5bn, accounting for $3.9bn of M&A and $4.9bn of shareholder returns. Within

$10-$16bn target range

Strong headline cash generation / debt coverage

Managing to c.1x cap in the current economic environment

with LT target of max. 2x through the cycle

Readily Marketable Inventories (RMI) ($)

17.4bn-16%. Targeting RMIs consistently <$20bn

through the cycle

Liquidity ($)

10.2bnAvailable committed

undrawn credit facilities and cash

Liquidity and funding• Committed available liquidity of $10.2bn• Post 2018 bond maturities managed at c.$3bn in any one

year

Commitment to strong BBB/Baa Investment Grade• Moody’s: Baa2 (positive outlook), S&P: BBB+ (stable)• Targeting c.1x Net debt/Adjusted EBITDA cap

in the current uncertain economic environment • Long-term target of maximum 2x, augmented by an upper

Net debt cap of c.$16bn• Strong cash flow coverage ratios:

• FFO to Net Debt of 78.8%• Net debt to Adjusted EBITDA of 0.93x

Optimised capital structure provides balance sheet strength, good flexibility and stability of distributions

2019 Modelling guidance



Industrial2019 key commodity outlook - spot commodities / FX

Copper Zinc Nickel Coal

$4.4bn(1)

EBITDA

87 87

104

125

2016A 2017A 2018A 2019E

1610

2436

-5-16

-48

2016A 2017A 2018A 2019E

265

191 211

379

2016A 2017A 2018A 2019E

3946 47 48

1832

40 37

2016A 2017A 2018A 2019E

Margin ($/t)

Ex gold

• 1.500Mt (+46kt YoY)• 28% Group EBITDA• 146¢/lb illustrative

EBITDA margin

• Production: +46kt: mainly Katanga ramp-up less Mutanda revised mine plan

• Unit costs: +21¢/lb: lower cobalt sales volume and cobalt spot realised price assumptions. Expected to reverse in 2020 with higher cobalt sales revenue. 2019 costs would be 33¢/lb lower using Dec Investor Update cobalt sales volume/price assumptions

• 1.195Mt (+127kt YoY)• 14% Group EBITDA• 114¢/lb illustrative

EBITDA margin

• 138kt (+14kt YoY)• 4% Group EBITDA• 184¢/lb illustrative

EBITDA margin

• 145Mt (+16Mt YoY)• 34% Group EBITDA• $37/t illustrative

EBITDA margin

18

$2.3bnEBITDA

$0.6bnEBITDA

$5.4bnEBITDA

• Production: +127kt: mainly Lady Loretta ramp-up

• Unit costs: +12¢/lb: lower by-products (lower lead and copper prices), higher TCs and lower earnings contribution from smelters

• Production: +14kt: INO and Koniambo

• Unit costs: +168¢/lb: Koniamboincorporated into unit costs (higher unit cost while ramping up), lower by-product credits / higher costs at Murrin Murrin (planned maintenance)

• Production: +16Mt: Full year of HVO and Hail Creek volumes, recovery from Prodeco following a period of additional mine development

• Unit costs: +$1/t: weaker AUD countering various input cost pressures

Mine costs (¢/lb) Mine costs (¢/lb) Mine costs (¢/lb) Mine costs and margin($/t)

92

Notes: (1) Copper EBITDA would be c.$1.0bn higher using December Investor Update cobalt sales volumes and price assumptions (equivalent to 33c/lb on copper unit costs)


Production guidanceUpdate

2018A 2019F 2020F 2021F Δ 2018-2021FCopper – Base kt 1301.3 1215 ± 20 1215 ± 20 1215 ± 20Copper - Katanga guidance(2) kt 152.4 285 ± 15 285 ± 15 285 ± 15Copper - Group kt 1453.7 1500 ± 35 1500 ± 35 1500 ± 35 +3%

Cobalt – Base 31.1 31 ± 3 31 ± 5 30 ± 5Cobalt - Katanga guidance(2) kt 11.1 26 ± 2 32 ± 2 38 ± 2Cobalt - Group kt 42.2 57 ± 5 63 ± 7 68 ± 7 +74%

Zinc(3) kt 1068.1 1195 ± 30 1335 ± 30 1395 ± 30 +28%Lead kt 273.3 345 ± 10 390 ± 10 370 ± 10 +30%Nickel kt 123.8 138 ± 5 140 ± 5 138 ± 5 +10%Ferrochrome kt 1580 1690 ± 30 1640 ± 30 1640 ± 30 +2%Coal Mt 129.4 145 ± 3 145 ± 3 145 ± 3 +10%Oil – entitlement interest Mbbl 4.6 6.2 ± 0.2 7.4 ± 0.2 13.0 ± 0.2 +183%

Group guidance – own source(1)

19

Mutanda update• Sulphide reserve feasibility study planned for completion by the end of 2019, following which an investment decision will be considered• Re-optimised mine plan to extend life of the oxide resource is now expected to reduce annual production to c.100ktpy Cu and c.25ktpy Co • New mine plan ensures continuity of operations in the event of a positive sulphides investment decision and the associated development

timeline

Notes: (1) 2019F, 2020F and 2021F copper and cobalt production reflects new 100ktpa Mutanda production plan. (2) Katanga Mining Press release, 3 December 2018, “Katanga Mining Announces Commissioning of Phase 2 of the whole ore leach plant and provides an operational update”. (3) Excludes Volcan

Notes: (1) See slide 40 for underlying scenario assumptions (2) Copper EBITDA would be c.$1.0bn higher and free cash flow c.$0.7bn higher using December Investor Update cobalt sales volumes and price assumptions

20Illustrative spot free cash flow scenario analysis(1)

Free cash flow through the cycle: c.$5-10bn

Unsustainable

0 2000 4000 6000 8000 10000 12000 14000 16000

Trough$3.6bn

Downside$4.9bn

Spot$6.8bn(2)

Upside$10bn

Supercycle$14.4bn

Through the cycle free cash flow

$M


2017$7.7bn

2018$6.9bn


2019 illustrative “spot” annualised cashflows

Notes: (1) Other industrial EBITDA includes Ferroalloys, Oil and Aluminium less c.$400M corporate SG&A. (2) Marketing Adjusted EBITDA of $2.8bn is calculated from the mid-point of the of the $2.2-$3.2bn EBIT guidance range plus $75M of Marketing D+A. (3) Industrial capex including JV capex plus marketing capex of c.$100M in 2019E. (4) Excludes working capital changes and distributions. (5) Copper spot annualised adjusted EBITDA calculated basis mid-point of 2019 production guidance Slide 19 adjusted for copper produced by other departments. Spot LME price as at end January 2019, less 4% discount reflecting payabilities on product mix. Costs include by-products, TC/RCs, freight, royalties and a credit for custom metallurgical EBITDA. (6) Nickel spot annualised adjusted EBITDA calculated basis mid-point of production guidance Slide 19. Spot LME price as at end January 2019. (7) Coal spot annualisedadjusted EBITDA calculated basis mid-point of production guidance Slide 19. Spot NEWC price of $100/t, as at end January 2019, less $15/t portfolio mix adjustment and mine costs of $48/t (Slide 18) giving a $37/t margin to be applied across overall forecast group mid-point of production guidance of 145Mt (slide 19). (8) Zinc spot annualised adjusted EBITDA calculated basis mid-point of production guidance Slide 19 adjusted for zinc produced by other departments less payability adjustment Spot LME price as at end January 2019. Cost includes credit for by-products and custom metallurgical EBITDA

Copper(5) GuidanceTotal copper production (kt) 1500Cu from Zn & Ni departments. (kt) -140Net relevant production (kt) 1360Realised Cu price (c/lb) – 96% LME 271Cost guidance (c/lb) 125Margin ($/lb) 146Margin ($/t) 3224Spot annualised Adj. EBITDA ($M) 4384

Zinc(8) GuidanceTotal zinc production (kt) 1195Zn from Cu department (kt) -105Payability deduction (kt) -187Net relevant production (kt) 903Spot Zn price (c/lb) 121Cost guidance (c/lb) -7.5Margin (c/lb) 114Margin ($/t) 2505Spot annualised Adj. EBITDA ($M) 2262

Nickel(6) GuidanceProduction (kt) 138.0Spot Ni price (c/lb) 563Cost guidance (c/lb) -379Margin (c/lb) 184Margin ($/t) 4065Spot annualised Adj. EBITDA ($M) 561

Coal(7) GuidanceTotal coal (Mt) 145.0Spot nearby NEWC price ($/t) 100.0Portfolio mix adjustment @ February 2019 ($/t) -15.0Cost guidance ($/t) -48.0Margin ($/t) 37.0Spot annualised Adj. EBITDA ($M) 5365

Group $bnCopper EBITDA 4.4Zinc EBITDA 2.3Nickel EBITDA 0.6Coal EBITDA 5.4Other Industrial EBITDA(1) 0.4Marketing EBITDA(2) 2.8Group EBITDA 15.8Cash Taxes, Interest + other -3.9Capex(3) -5.1Illustrative spot free cash flow(4) 6.8

21


Capital allocation2019 framework

Distributions / buybacks

M&A +Other

Maintain strong

BBB/Baa

Equity cash flows

• Our capital allocation framework balances:◦ Preservation of an optimal capital structure◦ Attractive business reinvestment/growth opportunities◦ Shareholder distributions

• Today we are of the view that its difficult to find a better investment than buying back our own shares◦ Current dislocation between share price levels and the

prospects, strength and embedded optionality in our business

• 2019 equity cash flows will be prioritised for:◦ Buybacks - funded by cash generation◦ Net funding – focus on selective RMI reduction,

consistently targeting levels below $20bn◦ Net debt – maintain $10-$16bn guidance range

• 2019 distributions and shareholder returns◦ $2.75bn base distribution of 2018 cash flows (20c/share)(1)

◦ $2bn new buyback program to end of 2019, with top-up if/as market conditions support, including from$1bn non-core targeted asset disposals

22

Notes: (1) See slide 33 for 2019 Recommended distribution calculation

23Modelled buybacksReducing modelled share capital by up to 9% by end 2019 (from 30 June 2018); amongst the highest FTSE 100 returns yield


2019 returns yield: dividend + buyback announcements(1)

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%

Mining Peer 1

Glencore

Mining Peer 2

Mining Peer 3

Ord. Dividend Ord. Buyback Buyback (Disposal proceeds)

Share capital reduction scenarios

2018

3.0%

2019

4.3%

2019

6.1%

Cumulative

3.0%

Cumulative

7.1%

Cumulative

8.9%

2018 ($1.7bn) 2019 +$2bn ($2.3bn) 2019 +$3bn ($3.3bn)Reduction in share capital Cumulative reduction in share capital

Date Shares eligible for distributions30 June 2018 14.254bn31 Dec 2018 13.832bn31 Dec 2019F 12.990bn ($3bn buyback)

Source: Glencore, Deutsche Bank, data as of 18 February 2019. (1) Based upon dividends/distributions and buybacks announced in 2019. Glencore - assumes 20c/shr dividend, $2bn buyback plus $1bn buyback using disposal proceeds. Non-Glencore buyback assumptions as per Deutsche estimates. For other companies (except Mining Peer 1) assumes zero buybacks via disposal proceeds as these are typically announced only at the point of asset sale

Funded through organic cash flow

OutlookIvan Glasenberg – Chief Executive Officer


Notes: (1) Bloomberg, Economic Policy Uncertainty Index based on Current Price GDP Weights. Long-term average = 100. (2) Bloomberg

Commodity fundamentals still positiveDespite trade/China/Macro fears


25

Policy uncertainty is rising(1) … … and trade/China/Macro fears have produced an

economic drag(2)

Global Economic Policy Uncertainty Index

100

150

200

250

300

350

Feb-16 Oct-16 Jun-17 Feb-18 Oct-18

Manufacturing PMI Index

46

48

50

52

54

56

58

60

62

Feb-16 Sep-16 Apr-17 Nov-17 Jun-18 Jan-19Eurozone China USA Japan



26

Sector reinvestment remains limited(1) … … demand growth remains solid(2) …

Sector capex ($bn)

1523

37

53

41 44

58

7772

59

42

30 3238

43 42 38 35

200

5

200

6

200

7

200

8

200

9

2010

2011

2012

2013

2014

2015

2016

2017

2018

F

2019

F

2020

F

2021

F

2022

F

0.0%

2.0%

4.0%

6.0%

8.0%

Alu

min

ium

Cop

per

Iron

Ore

Lead

Nic

kel

Ther

mal

Coa

l

Zin

c

2013-2018 CAGR 2018

Average: $43bn

Seab

orne

Notes: (1) Company data, Morgan Stanley Research estimates, January 2019. (2) Company sources for Nickel, Wood Mackenzie monthly reports for Copper, Zinc, Lead, Iron Ore, CRU for Aluminium.



27

… and inventories significantly reduced(1)

Global inventories (rebased 100=Dec 2015)

Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18

Days consumptionAverage High Low Today

Copper 17 22 12 13Zinc 13 19 7 8Nickel 69 96 34 34

Copper

Zinc

Nickel

In 2019 continued inventory draw downs are likely(2,3)

What’s the minimum 2019 demand growth needed for inventory draw?

5.6%

1.9%

2.7%

6.5%

0.6%

2.8%

-1.3%

-2.0%

0.8%

Nickel Zinc Copper

2013

-201

8 CA

GR

Dem

and

2018

Dem

and

Minimum demand growth

for continued inventory

draw

Notes: (1) Inventories comprise various sources including LME, SHFE and Comex warehouse stocks. (2) Glencore estimates for Nickel, Wood Mackenzie monthlies Zinc and Copper. (3) See Slides 41,42,43 for underlying data.

28Our investment case


-1.0%-2.0%

0.9%

Nickel Zinc Copper

10.6%

8.5%

6.1%

Glencore

Top 10average

Top 20average

Downside$4.9bn

Upside$10bn

Spot$6.8bn

Attractive commodities and high margin assets …

… generating strong and sustainable cashflows …

… and compelling returns for shareholders

• Our commodity fundamentals are in great shape, inventories are low

• Minimal 2019 demand growth required to see continued inventory draws

• Our quality assets deliver high margins

• We should deliver strong annual free cash flow through the cycle of $5-10bn

• Well capitalised assets with minimal growth capex

• Optimized balance sheet

• $5.2bn distributions and buybacks announced in 2018

• $5.8bn likely minimum distributions and buybacks in 2019

• #4 FTSE 100 shareholder return yield in 2019(3)

Minimum demand growth for 2019 inventory draw(1) …

Illustrative free cash flow through the cycle(2) …

FTSE 100: 2019 implied returns yield(3)

Note: (1) See slide 27 (2) See slide 40 (3) See slide 23

Q&A


Appendix



312018 Industrial mine costs/margin reconciliation

Zinc(1) Guidance ActualTotal Zinc production (kt) 1090 1068Zn from other depts (kt) -122 -138Payability deduction (kt) -145 -140Net relevant production (kt) 823Act. relevant production (kt) 791Realised Zn price (c/lb) 129 129Full cash cost (c/lb) 3 4FY Margin (c/lb) 132 133FY Margin ($/t) 2902 2931Implied EBITDA ($M) 2388Reported 2018 EBITDA ($M) 2317

Coal(1) Guidance ActualTotal coal production (Mt) 132.0Actual production (Mt) 129.4Average Cal18 NEWC ($/t) 107 107Portfolio mix adjustment ($/t) -16 -20

Full cash cost ($/t) -52 -47FY Margin ($/t) 39 40Implied EBITDA ($M) 5148Reported 2018 EBITDA ($M) 5159

Nickel(1) Guidance ActualTotal Nickel production (kt) 126.0 123.8Less Koniambo prod. (kt) -30.0 -28.3Net relevant production (kt) 96.0Act. relevant production (kt) 95.5Realised Ni price (c/lb) 590 590Full cash cost ($/t) -180 -211FY Margin (c/lb) 410 379FY Margin ($/t) 9039 8356Implied EBITDA ($M) 868Reported 2018 EBITDA ($M) 798

Copper(1) Guidance ActualTotal copper production (kt) 1465 1454Cu from other depts (kt) -147 -137Net relevant production (kt) 1318Actual relevant prod. (kt) 1316Relevant copper sales (kt) 1318Act. Cu sales (-22kt vs. prod.) 1294Realised Cu price (c/lb) 270 270Full cash cost (c/lb) -103 -104Margin (c/lb) 167 166Margin ($/t) 3679 3654Implied EBITDA ($M) 4849Reported 2018 EBITDA ($M) 4730

Note: (1) FY Guidance based on the Investor Update presentation, December 2018, 2018 Half Year results presentation, 8 August 2018, Full Year 2018 Production Report, 1 February 2018. Own source copper sales were 22kt lower than production due to timing of shipments


Key underlying EBITDA sensitivities

Approximate estimated impact on FY2019 EBITDA given a change of: $M$100/t on copper price 140

$10/t on NEWC thermal coal price 480

$10/t on coking coal (HCC) price 60

$100/t on zinc price 130

$1/lb on realized cobalt price 100

$1000/t on nickel price 140

Australian (1c AUD/USD) operations 50

South African (1 USD/ZAR) operations 130

Canadian (1c USD/CAD) operations 10

Chile (10 USD/CLP) operations 10

32


2019 Recommended distribution calculation

Distribution policy:• $1bn fixed payment from Marketing free cash flow• Variable payment representing a minimum 25% of

Industrial asset free cash flow• Referenced to prior year earnings• Paid in two equal installments in H1/H2• Variable component continuously reviewed in the

context of overall balance sheet requirements, buybacks vs. distributions considerations and subject to prevailing conditions and outlook

• Opportunity to top up distributions, as appropriate at interim reporting

Basis 2018 equity cash flows, the Board has recommended a 2019 distribution of $0.20 per share (c.$2.75bn), comprising $1bn from Marketing and 35% of Industrial asset free cash flows

Distribution payout of 48% of Net income pre significant items

2019 Recommended distribution

$M Marketing Industrial Total

Adjusted EBITDA 2,492 13,275 15,767

Non-cash items in associates' EBITDA - (6) (6)

Net capex (incl. JVs) (89) (4,810) (4,899)

Net interest paid (388) (812) (1,200)

Tax paid (167) (2,239) (2,406)

Dividend received from Volcan - 4 4

Dividends paid to minority interests - (343) (343)

Equity cash flow 1,848 5,069 6,917

Industrial distribution % of Industrial cash flows 35%

Minimum distribution 1,000 1,267 2,267

Additional distribution proposed 485 485

Total distribution 1,000 1,752 2,752

Number of eligible shares (M)(2) 13,762

Distribution ($/share) $0.20

33

Note: (1) Refer to Preliminary Results 2018, (2) See note 16 page 73. Eligible shares calculated from 14,586,200,000 ordinary shares as at 15 February less 170,130,000 trust and 654,473,000 treasury shares that do not participate in the distribution.

Source: Glencore, as of 15 Feb 2019. (1) Assumes new $2+1bn buyback completed by year-end at average GBP3.06 share price and 1.29 GBP/USDPreliminary Results 2018

Buyback updateShares eligible for distribution

$2bn buy back – almost complete

• 493m shares purchased since July 2018

New $2+1bn buy back• $2bn - program to run to year end• $1bn – available via targeted disposal proceeds

Shares eligible for distribution as at 15 Feb 2019(thousand shares):

Shares eligible for distribution (million shares)

12800

13300

13800

14300

FY14 H115 FY15 H116 FY16 H117 FY17 H118 FY18 H119 FY'19

Issued share capital

Shares eligible for distribution – issued share

capital less treasury and trust shares

Issued share capital 14,586,200 Less Treasury shares (@ 15 Feb 2019) 654,473 Less Trust shares(2) 170,130Shares eligible for distributions 13,761,597

FY18: 13832

FY19: 12990 (1)

18 Feb 2019: 13762

34

Notes: (1) Note 20, Pages 77 and 78, Preliminary Results 2018, excludes Volcan bond.Preliminary Results 2018

Debt maturity profile – capital market notes$22bn as at 31 December 2018(1)

0

1000

2000

3000

4000

5000

6000

7000

8000

2019 2020 2021 2022 2023 2024 2025 2026 2027 post 2027

USD EUR GBP CHF AUD JPY

Illustrative 2019 free cash flow c.$6.8bn

35

Downside case free cash flow c.$4.9bn

• Managing annual debt maturities to around $3bn• Conservative debt maturity profile even when considering a downside free cash flow scenario ($4.9bn)


Own source production2013-2018 History

14931546

1502

1426

1310

1454

2013 2014 2015 2016 2017 2018

Copper (kt)

12381295

14621523 1531 1580

2013 2014 2015 2016 2017 2018

20.6

23.4

19.7

17.2

18.7

17.3

2013 2014 2015 2016 2017 2018

Zinc (kt) Lead (kt) Nickel (kt) Cobalt (kt)

1399 13871445

1094 1090 1068

2013 2014 2015 2016 2017 2018

7.3

6.0 5.9

5.3

6.1

7.5

2013 2014 2015 2016 2017 2018

22.9 22.7

17.3

12.110.0 10.0

2013 2014 2015 2016 2017 2018

315308

298 295

273 273

2013 2014 2015 2016 2017 2018

4.5

3.5 3.6

4.24.0 3.9

2013 2014 2015 2016 2017 2018

18.619.5

17.6 17.3

14.6

11.7

2013 2014 2015 2016 2017 2018

98 10196

115109

124

2013 2014 2015 2016 2017 2018

48.1

54.652.4 52.5

49.1

59.4

2013 2014 2015 2016 2017 2018

11.011.2 11.1

10.7 10.6

10.2

2013 2014 2015 2016 2017 2018

19 2123

28 27

42

2013 2014 2015 2016 2017 2018

5.1 5.4

3.9

5.6

7.5

9.4

2013 2014 2015 2016 2017 2018

5.0

7.4

10.6

7.5

5.0 4.6

2013 2014 2015 2016 2017 2018

Ferrochrome (kt) Coking coal (Mt) Semi-soft coking coal (Mt) AUS export thermal coal (Mt) AUS domestic thermal coal (Mt)

SA export thermal coal (Mt) SA domestic thermal coal (Mt) Prodeco thermal coal (Mt) Cerrejon thermal coal (Mt) Oil entitlement interest (Mbbl)

36


Responsibly sourcing the commodities that underpin everyday life

It is our responsibility to not only deliver financial performance but also make a positive contribution to society and operate in a responsible and transparent manner

Our sustainability strategy1) Health: Become a leader in the protection and improvement of our people’s and

communities’ wellbeing2) Safety: Become a leader in workplace safety, eliminating fatalities and injuries3) Environment: Minimise any negative impact from our operations and apply the

precautionary principle in decision making4) Community and human rights: Foster sustainable growth and respect human

rights wherever we operate

37


2019 Distribution timetableIn respect of 2018 cash flows

First tranche of proposed distribution 2019

Applicable exchange rate reference date (Johannesburg Stock Exchange (JSE)) Close of business (UK) 11 April

Applicable exchange rate announced on the JSE 12 April

Last day to effect removal of shares cum distribution between Jersey and JSE registers at commencement of trade 12 April

Last time to trade on JSE to be recorded in the register for distribution 23 April

Ex-distribution date (JSE) 24 April

Ex-distribution date (Jersey) 25 April

Distribution record date for JSE Close of business (SA) 26 April

Distribution record date in Jersey Close of business (UK) 26 April

Deadline for return of currency elections form (Shareholders on Jersey Register only) 29 April

Removal of shares between the Jersey and JSE registers permissible from 29 April

Applicable exchange rate reference date (Jersey) 1 May

Annual General Meeting (shareholder vote to approve aggregate 2018 distribution) 9 May

H1 distribution payment date 23 May

38

Listed entity market valuations and selection of other entities

Listed entities % owned Market value $MRussneft 25.0% 660EN+ 10.6% 528Volcan 23.3%(1) 472Rosneft 0.6% 370Century 47.4% 356Yancoal 6.8% 202Other(2) Various 304Total 2892

Selection of other entitiesUS oil infrastructureBaseCore (50% owned royalty company)American Zinc Recycling (10% owned)

Preliminary Results 2018 Notes: Market values as at February 18 2019. (1) Economic interest based on aggregate market cap derived from both share classes. (2) Other includes Trevali Mining, Polymet, Recyclex, Aurelia Metals, Oz Minerals, Paranapanema and Merafe

39


40Illustrative spot free cash flow scenario analysisScenario assumptions

Trough (Q1 2016)

Downside (FY 2016 ave.) Spot Upside Supercycle

EBITDA $bn 9.0 11.1 15.8 21.7 29.0

Free cash flow $bn 3.6 4.9 6.8 10.0 14.4

Copper $/t 4678 4867 6200 7000 10000

Zinc $/t 1686 2094 2670 3250 3750

Nickel $/t 8548 9606 12420 15000 25000

Cobalt (realised) $/lb 7.3 8.1 12.2 24.5 31.5

Thermal Coal (NEWC) $/t 51 65 100 120 140

AUD 1.38 1.34 1.38 1.37 1.35

ZAR 15.8 14.7 13.3 13.9 13.0

CAD 1.37 1.32 1.31 1.33 1.30

Total capex $bn 3.6 3.6 5.1 5.6 6.1

Notes: (1) Source: Wood Mackenzie (2) Source: Wood Mackenzie, adjusted for new Company guidance

2016 2017 2018 2019F 2020F

SupplyDemand

Commodity fundamentals: our key commodities have capacity to buffer a demand slow-down


41

Copper: demand growth has been resilient…Copper demand (kt)(1) Copper supply vs. demand scenarios (kt)(2)

… and inventory drawdowns persist in a slow-down

2013 2014 2015 2016 2017 2018

2013-2018 CAGR +2.7%

+2.8% 2013-2018 CAGR demand

0.8% demand

Inventory draw down

2018-2020 supply:

+1.7% CAGR

+1.4% supply growth YoY in 2019

2016 2017 2018 2019F 2020F

SupplyDemand



42

Nickel demand growth has been strong …Nickel demand (kt)(1) Nickel supply vs. demand (kt)(1)

… inventory drawdowns likely to persist in a slow-down, even allowing for strong supply scenarios

2013 2014 2015 2016 2017 2018

2013-2018 CAGR demand

-1.3% demand

2018-2020 supply:+6.4% CAGR

+6.2% supply growth YoY in

2019

Inventory draw down

2013-2018 CAGR +5.6%

+6.5%

Notes: (1) Source: Glencore

Notes: (1) Source: Wood Mackenzie

2014 2015 2016 2017 2018 2016 2017 2018 2019F 2020F

Supply

Demand



43

Zinc demand growth has been resilient (kt)(1) …Zinc supply vs. demand (kt)(1)

… inventory drawdowns are likely even with the potential of significant supply growth

Inventory draw down

2018-2020 supply:

+6.1% CAGR

+6.4% supply growth YoY

in 2019

2013-2018 CAGR demand

-2.0% demand

2013-2018 CAGR +1.9%

+0.6%

Zinc demand (kt)(1)

Documents

Preliminary Results 201834db9396-89ae-4c79-84d6-c5d356ac7fd2/20190220-Gl...Preliminary Results 2018 Important notice concerning this document including forward looking statements This